Mittal joining Goldman could raise questions

Goldman Sachs had late last month announced appointment of Mittal, estimated to have a net worth of over $ 50 billion and CEO of the world's largest steelmaker ArcelorMittal, as an independent director effective June 28.     

British daily Financial Times said in a report today that "Multi-billion dollar losses have left investment banks under pressure to refresh their boards and hire more directors with a financial background. But the debate has been complicated by Goldman Sachs' decision to appoint Lakshmi Mittal, the mining magnate, as an independent director last week."     

Mittal will serve on the Audit, Compensation and Corporate Governance and Nominating Committees of the Board and would take the Goldman Sachs' board strength to 13 directors, including 10 independent directors.     

While noting that Goldman might be the Wall Street bank under the least pressure to change its governance or management model, given the relatively small writedowns suffered in comparison to its rivals during the credit crunch, the report said: "At a time when Goldman's  rivals are trying to copy the formula of its success, its decision to put an industrialist rather than a banker on to its board could be influential."     

Announcing Mittal's appointment, Goldman Sachs Group Chairman and CEO Lloyd C Blankfein had said: "Lakshmi Mittal has reshaped a global industry and, in the process, has engineered new modes of production, identified unrealised value and sparked remarkable growth."